In the world of contracts and business agreements, it`s important to understand which types of contracts need to be in writing in order to be legally enforced. Here, we`ll take a look at some common examples of contracts that must be in writing to be enforceable, according to Quizlet.
1. Contracts for the sale of goods over $500
If you`re entering into an agreement to buy or sell goods, and the value of those goods is over $500, the contract must be in writing in order to be legally binding. This is known as the Statute of Frauds, which requires certain types of contracts to be in writing in order to prevent fraud and misrepresentation.
2. Contracts that cannot be performed within one year
If a contract is unable to be fully performed within one year of its creation, it must be in writing to be enforceable. For example, if you`re entering into an agreement to build a house, and it will take longer than a year to complete the construction, the contract must be in writing.
3. Agreements to pay someone else`s debts
If you`re agreeing to pay someone else`s debts, the contract must be in writing to be legally binding. This can include situations where a parent is agreeing to pay for their child`s student loans, or where a business owner is agreeing to pay off their partner`s debts.
4. Contracts for the sale of real estate
Any agreement related to the sale or transfer of real estate must be in writing to be enforceable. This includes not only the purchase itself, but also any leases or rental agreements related to the property.
5. Contracts for marriage
While not necessarily a business agreement, it`s worth noting that contracts related to marriage must be in writing in many jurisdictions. This can include prenuptial agreements, marriage settlements, and other legal documents related to the union.
In conclusion, understanding which types of contracts require a written agreement is essential for anyone involved in business or legal agreements. By following the Quizlet guidelines outlined above, you can ensure that your contracts are legally binding and enforceable.